Africa’s top three economies — South Africa, Egypt and Nigeria — have emerged as the leading destinations for electricity investments on the continent in 2025.
The three countries accounted for about 91 of the 142 transactions tracked by Electron Intelligence, a Nigerian based research firm, in its latest report obtained by Energy in Africa.
According to the report, South Africa attracted about $2.16 billion in electricity investments in 2025, making it the largest destination for such deals. The country recorded 36 deals within the same period.
The report also shows that about ten countries accounted for more than 70% of the total transactions across the continent.
“Solar draws the largest share of capital in the 2025 deal record because it appears repeatedly across the three ways capital is deployed in the power market,” Electron Intelligence said.
The three channels through which capital flowed into the continent in 2025 were project finance, corporate finance and portfolio style financing, the report added.
The report breaks down not just volume but structure. It shows how capital was deployed, who provided it, and the types of assets that attracted funding.
South Africa commercial banks power project deals
According to Electron Intelligence, South Africa recorded the highest number of deals and the largest total volume. The country’s deal flow was shaped by commercial-bank project finance and corporate platform financings.
“South Africa is one of the few markets where senior debt can repeatedly close at size, because contracts, counterparties, and structuring are sufficiently infrastructure-grade,” the report stated.
Commercial banks led by value, committing $1.25 billion across 15 deals. Project finance accounted for $1.37 billion, surpassing corporate finance, which totaled $680 million. Generation projects dominated activity, drawing $1.62 billion across 35 transactions.
Storage and flexibility assets featured in only two disclosed deals but amounted to $316 million, suggesting large scale battery projects rather than pilot schemes.
Among the biggest disclosed transactions were the Ummbila Emoyeni 3 Wind and Ishwati Emoyeni Wind farms, both supported by debt financing from Standard Bank, as well as the Red Sands battery energy storage system.
The report also pointed to regulatory changes as a factor shaping deal activity. The introduction of network charge rules for third-party wheeling by the National Energy Regulator clarified pricing structures for private offtake transactions.
Egypt’s DFI-backed utility projects
On its part, Egypt’s $1.95 billion deal profile was driven largely by development finance institutions (DFIs). The report described the country’s 2025 activity as “highly concentrated, utility-scale, and almost entirely DFI-led.”
Project finance dominated generation assets, while sovereign and government-backed facilities supported grid and network upgrades.
A key example cited was the Egypt–Germany debt swap package tied to grid evacuation works linked to wind projects in the Gulf of Suez corridor.
The report described Egypt as “a market where large-scale renewable and grid investments are being catalyzed through DFI-led, structured finance, often with multi-lender stacks.”
Large projects included the Abydos II Solar PV and battery project, Obelisk 1 GW Solar with 200 MWh storage, and financing for Gulf of Suez wind farms.
Nigeria strategic deals and distributed energy
Nigeria ranked third by volume at $1.78 billion, with deal activity spread across strategic acquisitions, sovereign reform financing, and distributed renewable energy.
The report noted that Nigeria’s value was concentrated in a few large transactions, including a $750 million control transaction involving Geregu Power and a roughly $250 million acquisition linked to Eko DisCo.
A second layer involved DFI-backed sovereign support. Electron Intelligence cited the African Development Bank’s $500 million Economic Governance and Energy Transition Support programme as a key entry supporting market reforms and liquidity.
At the same time, smaller but frequent transactions occurred in distributed energy. Solar home system and mini-grid financings, including repeated entries linked to Sun King and Husk Power, formed what the report described as the “repeatable deployment pocket.”
It emphasized that revenue collection efficiency is a key factor in project valuation.
What you should know
Beyond the top three markets, other countries also attracted huge investment in their power sector within the same period.
For instance, Morocco recorded $1.38 billion across eight deals, largely tied to credit-supported infrastructure finance.
Côte d’Ivoire, Tunisia, Zambia, Sierra Leone, Malawi, and Rwanda also entered the top ten, often driven by one or two large sovereign or DFI-backed transactions.
In several of these markets, a single anchor project accounted for most of the annual volume. Examples included hydropower storage in Malawi and grid-linked transmission in Côte d’Ivoire.
The report noted that investment was concentrated in markets with bankable contracts, sovereign support, or clear regulatory frameworks.
